Acquisition

Celtic Resources Holdings PLC
08 November 2002
                                                                 8 November 2002

                         Celtic Resources Holdings Plc

    Celtic Resources announces acquisition of 675,000 ounce gold project in
                                   Kazakhstan


Celtic Resources Holdings Plc (Ticker CER), an AIM listed gold producer,
announced today that it has acquired 75% of Zherek, a Kazakhstan based company
which owns 100% of the 675,000 ounce Zherek gold deposit in Eastern Kazakhstan.

Zherek is a gold deposit comprising Russian quantified resources of
approximately 2 million tonnes of oxide ores averaging 2.8g/t Au (175,000 ounces
gold) and an estimated 2.8 million tonnes of sulphide ores averaging 5.5g/t Au
(500,000 ounces gold). Additionally, there is potential to increase the
resources especially in the sulphide zone with further drilling.

Zherek was intermittently mined in the past and existing infrastructure includes
a crushing plant and leach pads. It is located about 28km from Celtic's 1.45
million ounce Suzdal gold mine and will be operated as a satellite deposit with
gold loaded carbon transported to Suzdal for processing.

Celtic's Managing Director Mr Kevin Foo said today, "the acquisition of Zherek
extends the life of the Suzdal oxide heap leach for at least a further 3 years
and will boost the production from the planned sulphide plant."

Suzdal's heap leaching of oxides in a cold climate has been very successful and
the company is currently planning the development of high-grade sulphide ores
beneath the current pit. Celtic has managed the mine from 1999 and plans to
apply the experience gained at Suzdal to maximize the profitability of the
Zherek operation.

Celtic acquired the interest from a Kazakhstan Bank, Centre Credit Bank (CKB) in
return for $4.5 million paid from the profits of the operation during the period
of 7 years from the beginning of production. Celtic is responsible for providing
initial working capital in 2003, estimated to be $800,000.

Mr. Vladislav Lee, Chairman of CKB, said "CKB has always supported the
development of the mining industry in Kazakhstan and they are pleased to forge a
long-term relationship with a successful and dedicated company such as Celtic
that has an excellent record as a mining operator in Kazakhstan."

Celtic plans to commence full production from Zherek in May 2003. During the
first stage of operations, oxide ore will be mined from an open pit and leached
on adjacent heaps. Estimated production during this stage will be about 20,000
ounces of gold per year. Sulphide ore processing will be similar to that
proposed for Suzdal, with ultimate production from Zherek planned to be about
50,000 oz/year.

Suzdal itself is expected to produce 35,000 oz/yr of gold from oxide ores until
late 2004. An internal study to produce a development plan and detailed budget
for the sulphide ores will be completed by the end of 2002 whereupon financing
options will be assessed. It is expected that gold production from the sulphides
will reach 130,000 oz/yr by 2005 with operating costs ranging from $130-160/oz.


For more information please contact

Kevin Foo / Claire Bolton                       Joe Nally
Celtic Resources Holdings Plc                   Williams de Broe Plc
Tel: + 44 (0) 20 7593 0001                      Tel: [phone]
[e-mail]                [e-mail]


Leesa Peters / Cindy Dennis                     Nigel Heneghan / Rachel Watchorn
Capital PR                                      Heneghan PR, Dublin
Tel: [phone]                       Tel: + 353 1 660 7395
[e-mail]                             [e-mail]


                      This information is provided by RNS
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